Microsoft 365 Business Basic vs Standard vs Premium: Which Plan is Right for Your UK Business? (2026)
Microsoft 365 Business Basic is the cheapest Microsoft 365 plan at £4.90/user/month — but for most UK businesses, it's not the right choice. Choosing the wrong Microsoft 365 plan means either overpaying for features you don't need, or leaving critical security and productivity gaps that cost you more in the long run.
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This guide covers every Microsoft 365 business plan available in the UK in 2026, with updated pricing, a clear breakdown of what each plan includes, and an honest recommendation for different types of UK business.
Microsoft 365 Business Plans: UK Pricing 2026
| Plan | Price (ex VAT) | Annual Commitment | |---|---|---| | Microsoft 365 Business Basic | £4.90/user/month | Yes | | Microsoft 365 Apps for Business | £8.10/user/month | Yes | | Microsoft 365 Business Standard | £9.60/user/month | Yes | | Microsoft 365 Business Premium | £16.90/user/month | Yes |
UK prices from Microsoft, May 2026. Annual subscription, ex VAT. Monthly billing available at a premium.
All Microsoft 365 Business plans are capped at 300 users. If your organisation has more than 300 users, you need an Enterprise plan (M365 E3 or E5).
Microsoft 365 Business Basic — £4.90/user/month
Microsoft 365 Business Basic is Microsoft's entry-level business plan. It's designed for businesses that work primarily in a browser and don't need desktop Office applications installed on their computers.
What's included in Microsoft 365 Business Basic:
- Exchange Online — Professional business email on your own domain (you@yourbusiness.com), 50GB mailbox
- Outlook on the web — Browser-based email client (no desktop Outlook app)
- Microsoft Teams — Chat, video calls, meetings, file sharing
- SharePoint — Intranet and document libraries
- OneDrive — 1TB cloud file storage per user
- Web and mobile versions of Office apps — Word, Excel, PowerPoint, OneNote (browser and mobile only — no desktop installation)
- Microsoft Forms, Planner, To Do, Lists, Bookings
- Microsoft Defender — Basic antivirus and endpoint protection (up to 5 devices)
- MFA support — Multi-factor authentication
- Standard security policies — Spam filtering, malware protection
What Microsoft 365 Business Basic does NOT include:
- ❌ Desktop versions of Word, Excel, PowerPoint, Outlook
- ❌ Desktop Teams application (web app only)
- ❌ Microsoft Intune (device management)
- ❌ Azure AD / Entra ID Premium (Conditional Access, self-service password reset)
- ❌ Advanced Defender for Office 365 (Safe Links, Safe Attachments, anti-phishing)
Who should choose Microsoft 365 Business Basic?
Basic is right for you if:
- Your staff work primarily in a browser (Chrome, Edge) and don't need desktop Office
- You're a cloud-first business using Google Docs-style workflows and just need business email + Teams
- You have a tight budget and are comfortable using web-based Office apps
- Some users in your organisation only need email and Teams — nothing else
Basic is wrong for you if:
- Anyone in your team needs desktop Outlook — Basic only gives you Outlook on the web, not the installed desktop application
- Your staff use desktop Word, Excel, or PowerPoint regularly
- You need device management or advanced security (regulated industry, sensitive data)
- You work offline regularly
The real catch with Basic: Most UK businesses assume they're getting full Office. They're not. If your staff open Outlook, Word, or Excel from their desktop as installed applications, they need Standard or Apps for Business — not Basic.
Microsoft 365 Apps for Business — £8.10/user/month
Microsoft 365 Apps for Business is a plan that's often overlooked — but it fills a specific gap. It gives you the full desktop Office applications without the email hosting.
What's included in Microsoft 365 Apps for Business:
- Full desktop Office apps: Word, Excel, PowerPoint, Outlook, OneNote, Access (PC), Publisher (PC)
- Install on up to 5 PCs/Macs, 5 tablets, 5 smartphones per user
- OneDrive — 1TB cloud storage per user
- Web and mobile versions of Office apps
- Microsoft Loop, Clipchamp
What Apps for Business does NOT include:
- ❌ Business email (Exchange) — no @yourdomain.com email hosting
- ❌ Microsoft Teams
- ❌ SharePoint
- ❌ Intune, Defender for Office 365, Entra ID Premium
Who should choose Microsoft 365 Apps for Business?
This plan is ideal when your email is hosted elsewhere (e.g. Google Workspace handles your email, or you use an existing cPanel or IONOS email account) but you want the full desktop Office suite. It's also useful for adding desktop Office to users who have email covered under a different plan.
Microsoft 365 Business Standard — £9.60/user/month
Microsoft 365 Business Standard is the most popular Microsoft 365 plan for UK SMEs — and for most businesses, it's the right choice.
What's included in Microsoft 365 Business Standard:
Everything in Business Basic, plus:
- Full desktop Office applications: Word, Excel, PowerPoint, Outlook, OneNote, Access (PC only), Publisher (PC only)
- Install on up to 5 PCs/Macs, 5 tablets, 5 smartphones per user
- Desktop Teams application (not just the web version)
- Microsoft Bookings — Appointment scheduling
- Teams Webinar hosting — Attendee registration, reporting, advanced presenter controls
- Clipchamp — Browser-based video editor
- Microsoft Loop — Collaborative workspace tool
Who should choose Microsoft 365 Business Standard?
Standard is the right default for most UK SMEs. If your team uses Outlook, opens Word or Excel regularly, and works from PCs or Macs, Standard is what you need.
The jump from Basic (£4.90) to Standard (£9.60) is £4.70/user/month. For a 10-person business: £47/month extra. What you get: the full desktop Office suite your team already expects. For almost every business, that's worth it.
Standard is right for:
- Small and medium businesses (5–300 users) as the standard baseline
- Any business where staff use Outlook as their email client
- Businesses migrating from IONOS, GoDaddy, Fasthosts, or old on-premise Exchange
- Teams that create documents, spreadsheets, and presentations regularly
- Any business that hasn't had a reason to need device management yet
Consider upgrading to Premium if:
- You handle regulated data (financial, legal, healthcare, personal data at scale)
- You've experienced phishing attacks or account compromises
- Staff use personal devices to access company data (BYOD)
- You have 20+ staff and need consistent IT policy enforcement
Microsoft 365 Business Premium — £16.90/user/month
Microsoft 365 Business Premium is the most comprehensive Microsoft 365 business plan. It adds enterprise-grade security, device management, and compliance tools on top of everything in Standard.
What's included in Microsoft 365 Business Premium:
Everything in Business Standard, plus:
- Microsoft Intune — Mobile Device Management (MDM) and Mobile Application Management (MAM). Manage, configure, and remotely wipe company and personal devices. Enforce device compliance policies.
- Microsoft Entra ID (Azure AD) Premium P1 — Conditional Access policies, self-service password reset, dynamic groups, sign-in risk policies
- Microsoft Defender for Business — Advanced EDR (Endpoint Detection and Response), automated investigation and remediation, attack surface reduction rules
- Microsoft Defender for Office 365 Plan 1 — Safe Links (URL scanning), Safe Attachments (sandboxing email attachments), advanced anti-phishing protection
- Azure Information Protection P1 — Email and document sensitivity labelling and classification
- Microsoft Purview Information Protection — Basic data loss prevention (DLP)
- Windows Autopilot — Zero-touch device deployment and provisioning
- Microsoft Entra ID Conditional Access — Enforce access conditions (e.g. require MFA from unmanaged devices, block access from outside UK)
Who should choose Microsoft 365 Business Premium?
Premium is the right choice when security and compliance are not optional:
- FCA-regulated businesses — Financial advisers, wealth managers, mortgage brokers, insurance firms
- Legal firms — Solicitors, barristers' chambers, law firms with client confidentiality obligations
- Accountancy practices — ICAEW/ACCA members handling sensitive client financial data
- Healthcare — GP practices, dental practices, care homes, any business handling patient data
- Businesses with BYOD policies — If staff use personal phones or laptops to access company data, Intune is essential
- Remote-heavy workforces — Conditional Access ensures only compliant, authenticated devices access company systems
- Businesses targeting Cyber Essentials Plus or ISO 27001 — Premium provides the technical controls these standards require
- Organisations with 20+ staff — Intune and Entra ID make managing a larger, distributed workforce practical
The Premium value case: The difference between Standard and Premium is £7.30/user/month. For a 10-person business: £73/month (£876/year). What you get in return: enterprise device management, advanced email threat protection, and Conditional Access — tools that previously cost tens of thousands per year for enterprise licences. For any regulated business or one that's had a security incident, Premium is not a luxury.
Side-by-Side Comparison: All Four Plans
| Feature | Basic | Apps | Standard | Premium | |---|---|---|---|---| | Business email (Exchange) | ✅ | ❌ | ✅ | ✅ | | Microsoft Teams | ✅ | ❌ | ✅ | ✅ | | SharePoint | ✅ | ❌ | ✅ | ✅ | | OneDrive (1TB) | ✅ | ✅ | ✅ | ✅ | | Web/mobile Office apps | ✅ | ✅ | ✅ | ✅ | | Desktop Office apps | ❌ | ✅ | ✅ | ✅ | | Desktop Outlook | ❌ | ✅ | ✅ | ✅ | | Microsoft Intune (MDM) | ❌ | ❌ | ❌ | ✅ | | Entra ID Premium P1 | ❌ | ❌ | ❌ | ✅ | | Conditional Access | ❌ | ❌ | ❌ | ✅ | | Defender for Business (EDR) | Basic | ❌ | Basic | ✅ Advanced | | Defender for Office 365 P1 | ❌ | ❌ | ❌ | ✅ | | Safe Links / Safe Attachments | ❌ | ❌ | ❌ | ✅ | | Azure Info Protection P1 | ❌ | ❌ | ❌ | ✅ | | Max users | 300 | 300 | 300 | 300 | | Price/user/month (ex VAT) | £4.90 | £8.10 | £9.60 | £16.90 |
Can You Mix and Match Microsoft 365 Plans?
Yes — and this is one of the most underused features of Microsoft 365 licensing. You don't have to put every user on the same plan.
For example:
- Put most staff on Standard (£9.60) for desktop Office and Teams
- Give directors, finance, or IT admin users Premium (£16.90) for device management and advanced security
- Put light users (reception, warehouse) on Basic (£4.90) if they only need email and Teams
This mixed approach lets you control costs while ensuring high-risk users (who have access to sensitive data or administrative systems) have appropriate security controls.
As a Microsoft Partner, Coreitech manages mixed-licence M365 tenants and can advise on the right split for your business.
Microsoft 365 Copilot — AI Add-On (2026)
Microsoft 365 Copilot is Microsoft's AI assistant, integrated directly into Word, Excel, Outlook, Teams, PowerPoint, and other M365 apps.
- Microsoft 365 Copilot: £25.00/user/month (added to Standard or Premium)
- Microsoft 365 Copilot Business: Available bundled with some plan tiers — see Microsoft's latest pricing
Copilot capabilities include: drafting emails and documents, summarising Teams meetings, generating Excel formulas and data analysis, creating PowerPoint presentations from prompts, and AI-powered search across your M365 data.
Copilot requires Microsoft 365 Business Standard or Premium as a base licence. It cannot be added to Basic or Apps for Business.
Decision Guide: Which Plan for Which UK Business?
Startup / 1–3 people, tight budget
Choose Basic if you're comfortable with browser-based Office. Choose Standard if you need desktop Outlook or Office apps — which most businesses do.
Small professional services firm, not regulated (5–20 people)
Choose Standard for most users. Consider moving senior staff or anyone with access to client data to Premium.
Legal firm, FCA-regulated, accountancy practice
Choose Premium — this is not optional. Device management, Safe Attachments, and Conditional Access are required for compliance and PI insurance.
GP practice, dental practice, or healthcare provider
Choose Premium — DSPT compliance and data security requirements demand it. Intune and Defender for Business are essential.
Business migrating from IONOS / GoDaddy / Fasthosts
Start with Standard — you're upgrading significantly. Reassess Premium after 6 months once the team is settled.
BYOD policy or remote-heavy workforce
Choose Premium — Intune is essential for managing personal devices accessing company data securely.
Multi-site, 30+ staff
Choose Premium — Intune, Conditional Access, and Defender make managing a distributed workforce practical and auditable.
Your email is elsewhere (e.g. Google Workspace)
Choose Apps for Business — desktop Office without paying for email you don't need.
When to Consider Microsoft 365 Enterprise (E3/E5)
Microsoft 365 Business plans are capped at 300 users. If you have more than 300 users, you need Microsoft 365 Enterprise:
- Microsoft 365 E3 — The enterprise equivalent of Business Premium, with advanced compliance and eDiscovery
- Microsoft 365 E5 — Adds Microsoft Sentinel (SIEM), advanced compliance, and Defender for Identity
Enterprise plans also offer more granular compliance features (Advanced eDiscovery, Communication Compliance) that regulated sectors like financial services and legal may need at scale.
Frequently Asked Questions
What is Microsoft 365 Business Basic? Microsoft 365 Business Basic is Microsoft's entry-level business plan at £4.90/user/month (ex VAT, UK, annual commitment). It includes business email, Teams, SharePoint, OneDrive, and web/mobile Office apps — but does NOT include desktop versions of Word, Excel, PowerPoint or Outlook. It's suitable for businesses that work entirely in a browser.
What is the difference between Microsoft 365 Business Basic and Standard? The main difference is desktop Office applications. Business Standard (£9.60/user/month) includes full desktop Word, Excel, PowerPoint, and Outlook installed on up to 5 devices. Business Basic (£4.90/user/month) only gives you the browser-based versions. For most UK businesses that use Outlook daily, Standard is the correct choice.
Is Microsoft 365 Business Premium worth it? For regulated businesses (legal, financial, healthcare) or any business with BYOD devices or real security concerns — yes, absolutely. Premium (£16.90/user/month) adds Microsoft Intune (device management), Conditional Access, Defender for Business (EDR), and Defender for Office 365 Plan 1 (Safe Links, Safe Attachments). The extra £7.30/user/month vs Standard is almost always worth it for these business types.
Can I upgrade from Microsoft 365 Business Basic to Standard later? Yes. You can upgrade individual users or your entire tenant from Basic to Standard or Premium at any time mid-contract. Microsoft applies prorated billing for the change. Downgrading is also possible at renewal.
Does Microsoft 365 Business Basic include desktop Outlook? No. Microsoft 365 Business Basic does not include the desktop Outlook application. It includes Outlook on the web (OWA — browser-based email) only. If you or your staff need the full Outlook desktop app, you need Business Standard, Business Premium, or Apps for Business.
Does Microsoft 365 Business Basic include Teams? Yes — Teams is included in Business Basic. However, only the web version of Teams is available. The full desktop Teams application requires Business Standard or Premium.
What is the 300-user limit on Microsoft 365 Business plans? All four Microsoft 365 Business plans (Basic, Apps, Standard, Premium) are limited to a maximum of 300 users. Organisations with more than 300 users must use Microsoft 365 Enterprise plans (E3 or E5) instead.
How much does Microsoft 365 cost in the UK in 2026? UK Microsoft 365 Business pricing (ex VAT, annual): Basic £4.90/user/month, Apps for Business £8.10/user/month, Standard £9.60/user/month, Premium £16.90/user/month. Monthly billing is available at a higher rate.
Can I mix Microsoft 365 plans for different users? Yes. You can assign different Microsoft 365 plans to different users within the same organisation. This is common — for example, putting most staff on Standard while giving IT admins and senior management Premium licences for advanced security and device management.
What is Microsoft 365 Apps for Business? Microsoft 365 Apps for Business (£8.10/user/month) gives you full desktop Office apps (Word, Excel, PowerPoint, Outlook, OneNote) and 1TB OneDrive storage — but does NOT include Exchange email hosting or Microsoft Teams. It's ideal for businesses whose email is managed elsewhere but who need the full desktop Office suite.
How Coreitech Can Help
Coreitech is a Microsoft Partner based at London Bridge, SE1. We manage Microsoft 365 deployments, migrations, and licensing for SMEs across London and the UK.
We:
- Advise on the right plan mix for your specific business and team structure
- Procure Microsoft 365 licences at Microsoft Partner pricing
- Handle full deployment, migration (from IONOS, GoDaddy, Google, on-prem Exchange), and configuration
- Manage your M365 tenant on an ongoing basis — Intune, Entra ID, Defender, SharePoint
- Guide businesses through Cyber Essentials certification using Business Premium controls
Get a free Microsoft 365 recommendation or call 0203 834 9728.
Prices correct as of May 2026. Microsoft periodically adjusts UK pricing — contact Coreitech for the latest quotes.